WORK ON SEAWOLF FUEL CONTRACT HALTED

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, February 16, 1992                   TAG: 9202160140
SECTION: VIRGINIA                    PAGE: D-8   EDITION: METRO 
SOURCE: 
DATELINE: LYNCHBURG                                LENGTH: Short
WORK ON SEAWOLF FUEL CONTRACT HALTED
The Energy Department has suspended work on contracts to supply nuclear fuel for the Navy's Seawolf submarine program, a spokesman for the nation's sole producer of the fuel said Saturday.
"We are in a holding pattern," said Ron Hite, spokesman for Babcock & Wilcox Co.
Hite said he was unable to say whether suspension of the two fuel contracts means the Lynchburg-based firm is still doing any work on the Seawolf, the Navy's next-generation sub. The program has been targeted for deep cuts in the budget now before Congress.
"It's definitely related to the cutbacks," Hite said.
The exact nature, duration and price of the contracts is classified, Hite said. "I can tell you it is to provide nuclear fuel components for the Seawolf."
The suspension will have no immediate effect on the firm's work force, but likely will accelerate already-planned layoffs, Hite said. - Associated Press

by Bhavesh Jinadra by CNB